This 'Super Cheap' Stock Could Go Higher
Deere is a super cheap stock with a catalyst that could cause it to go higher, Cramer said Monday.
Even as stocks ended near session highs, the "Mad Money" host thinks the agricultural equipment maker's stock is a buy. After all, the stock has been taken to the woodshed. It's currently down 16 percent year-to-date and selling at a 30 percent discount to its historical average price-to-earnings multiple, he noted.
Cramer thinks DE could soon go higher thanks to two catalysts.
First, the U.S. Department of Agriculture's crop report could help the stock. Its World Agricultural Supply and Demand Estimates report will be released on Wednesday. A strong report would cause a lot of investors to come off the sidelines and buy this stock, he explained.
Second, Cramer said there is a secular growth trend showing the world's population will only continue to grow. The United Nations predicts the population to rise from 6.8 billion people in 2009 to 9.1 billion people by 2050. All of those people need to eat, Cramer said, and Deere's products help farmers get more out of the same amount of land they are farming now.
For those interested in buying Deere, Cramer would start with a small position. He would then buy more if the stock pulls back.
When this story was published, Cramer's charitable trust owned Deere.
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